On April 21, 2026, the U.S. Department of Labor (DOL) issued a notice of proposed rulemaking (NPRM) outlining a new standard for “joint employment” — under which separate entities will be found jointly liable for the other’s violations — under the Federal Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Seasonal Agricultural Worker Protection Act (MPSA). The Proposed Rule purports to standardize the definition of “joint employment” across all three laws to create “clarity” and “uniformity” for employers and employees alike.
The Proposed Rule is substantively similar to the DOL’s 2020 joint employer final rule that was issued during the first Trump administration. The DOL under the Biden administration rescinded that rule, but it never issued a replacement rule. As discussed below, the Proposed Rule sets out standards for two types of joint employment: vertical and horizontal.